Politically Exposed Persons (PEPs) are individuals who, through their position in public life, may be vulnerable to corruption. The definition of a PEP can be found in Section 5 of the Act and in your Compliance Programme glossary.

Specifically, a Politically Exposed Person (PEP) is an individual who holds, or has held at any time in the preceding 12 months in any overseas country, certain prominent public functions. This includes heads of state or of government, government ministers, senior judicial or military officials, senior foreign representatives, ambassadors or high commissioners, senior executives of state/government owned enterprises and the Reserve Bank Governor (or equivalent position).
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The definition of PEP also includes any immediate family member of the individual (spouse, partner, child, parent, etc.) and certain known associates (having regard to publicly available information) of an individual who is a PEP.
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The New Zealand legislation currently limits this concept to foreign PEPs, and does not include domestic PEPs i.e. those who hold or have held public offices in New Zealand. While you should confirm with all clients whether they are a PEP or not, you will need to pay particular attention to those who have an obvious foreign connection.